Honda and Nissan executives discussed the potential merger, highlighting the need to compete with China's rising dominance in the EV and autonomous driving market. The merger aims to reduce costs, leverage resources, and accelerate the development of software-defined vehicles (SDVs). Honda seeks Nissan's large SUVs and underutilized factories, while Nissan's struggles present an opportunity for Honda to utilize excess capacity.
Honda ’s potential merger with Nissan would represent one of the largest shake-ups to the industry since the creation of Stellantis in 2021. But there are huge risks involved, too. On Tuesday in Las Vegas, during a roundtable discussion with select media, Honda executives offered some more insight into the merger, including how combining resources and factories could help the companies stay competitive in the increasingly costly fight with China .
Toshihiro Akiwa, VP and head of Honda’s BEV development center, said through a translator that Honda’s hybrid technology is solid but only currently exists in its midsize vehicles like the CR-V and the Accord. The company is interested in Nissan’s larger vehicles because Honda’s “motor and battery capacity can be adapted to the larger vehicle.” While Honda does have the Prologue, that vehicle was part of a $5 billion joint venture with GM that only lasted through the development of two vehicles.
Automotive Automotive Industry Merger Honda Nissan China EV Autonomous Driving Software-Defined Vehicles
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